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India plans to increase import tariff on mobile phone PCB to 20%

Recently, the Ministry of Electronics and Information Technology of India intends to increase tariffs on smart phone import circuit boards (PCBs), which will be the third time that India has raised tariffs on mobile phones. Nowadays, mobile phone manufacturers are making overseas investments. The Indian market is generally the first stop for overseas markets, such as Huawei's millet, oppo, and vivo. However, India has repeatedly raised the proportion of tariffs on imported mobile phones, from 10% to 15%, and it is now planned to increase from 15% to 20% to increase domestic manufacturing strength. This is also the reason why the government has promoted the electronic industry in India. The latest plan.

India’s Ministry of Electronics and Information Technology has been working on a plan to increase tariffs on imported PCBs with built-in parts. Last year, India sold a total of 134 million smartphones, making it the world's second-largest smartphone market after mainland China.

As a key part of a mobile phone, a circuit board is embedded with a processor, a memory, and a wireless chip set, which can be said to be the core of an electronic device, and accounts for about half of the cost of a smart phone. At present, most smart phone manufacturers import circuit boards with embedded components to India and then assemble them locally.

Prime Minister Modi of India proposed a phased manufacturing program (PMP) in 2016, hoping that the local smart phone manufacturing industry will increase its production value year by year. The Modi government has raised tariffs on low-value parts such as batteries and chargers, and has also increased tariffs on mobile phones at the beginning of the year.

Government and industry sources said that if the Indian Ministry of Finance agrees with this proposal, it may be implemented in the next few days, when the cost of PCBs imported with built-in parts will increase, forcing manufacturers to switch to welding these parts in India.

Taiwan PCB industry analysis, this move has little effect on the cross-strait industry, but the fear of increasing the cost of assembly plants in India, mainly because there is no complete PCB settlements and conditions, hydropower, regulations and other three major crises still to be improved, but the taxation is not profitable Mobile phones made in India.

Such measures may in the short term stimulate Apple and other manufacturers to expand manufacturing and assembly capacity in India, and bring advantages to South Korea's Samsung Electronics and Lava, a local company, which have already machined these parts on PCBs.